Question
Question Auditor estimated the following Planned Detection Risks for the cycles: 1. Sales and Collection Cycle: High 2. Acquisition and Payment Cycle: Medium 3. Payroll
Question
Auditor estimated the following Planned Detection Risks for the cycles:
1. Sales and Collection Cycle: High
2. Acquisition and Payment Cycle: Medium
3. Payroll and Personnel Cycle: Low
4. Inventory and Warehousing Cycle: Medium
5. Capital Acquisition and Repayment Cycle: Medium
Required:
1. Which cycles will become the easiest and the hardest to audit? Please explain in detail with your own examples.
2. How will highly effective internal controls affect the given planned detection risks? Please explain in detail with your own examples.
3. How will acceptable audit risk affect planned detection risk? Please explain in detail with your own examples.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started